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Introduction to Investment Banking
Business Model
Learning Outcome(Slide2)
5
Connect business model to real-world finance
4
Understand value creation in investment banking
3
Recognize major client segments
2
Identify key revenue streams
1
Understand how investment banks make money
Choose cool, soft colors instead of vibrant colors
Max 6 Points for Summary & Min 4
Think & Reflect
Why would companies hire them?
If banks don’t rely on savings deposits… how do they earn?
Who pays investment banks?
A growing company wants
expansion capital.
Investment bank helps company
Result
Core idea: Investment banking is a service-driven revenue ecosystem.
Business Model Matters
Pillar 1: Revenue Sources
Advisory Fees
Interest Spread
Underwriting Fees
Trading Income
Pillar 2: Client Segments
Key idea: Institutional-focused client ecosystem
Investment banks serve:
Pillar 3: Value Creation
Investment banks contribute by:
Core insight: They strengthen capital flow in the economy.
Enabling Capital Efficiency
Faster, structured fundraising
Market Access
Connecting to global investors
Trust & Risk Management
Compliance, Accurate pricing, Financial stability
Real-World Integration
A company launching an IPO:
Investment bank advises structure
Underwrites issue
Connects investors
Revenue earned + value created
= functioning business model.
Summary
4
Business model = revenue + clients + value creation
3
Their role improves capital efficiency and trust
2
They serve corporates, governments, institutions
1
Investment banks earn through service-based revenue
Choose cool, soft colors instead of vibrant colors
Max 5 Points for Summary & Min 2
Quiz
Investment banks primarily earn through:
A. Savings deposits
B. Advisory & underwriting fees
C. Retail loans
D. ATM charges
Quiz-Answer
Investment banks primarily earn through:
A. Savings deposits
B. Advisory & underwriting fees
C. Retail loans
D. ATM charges
Introduction on investment Banking - Business Model
By Content ITV
